MORRISVILLE - Town Manager John Whitson received a five percent pay raise as a result of a positive annual performance evaluation unanimously approved by the Morrisville Town Council.

The pay raise equals $5,932 more, bringing his salary to $123,642 and closer to his peers in similar size towns, said Mayor Jackie Holcombe.

The new salary was effective Nov. 14.

Holcombe said she supported Whitson's increase despite the economic climate. Whitson has improved the town's bond rating and modernized communications in his past nine years at the helm, and he was making significantly less than his counterparts, she said.

"The town's financial picture couldn't be better," Holcombe said, after the council's vote Nov.10. "(Whitson) has made do with a smaller staff and at the same time making sure services are being delivered."

In the next year, the council will have to decide how best to spend an unanticipated surplus between $700,000 and $5 million.

The Morrisville Town Council surveyed other towns with similar numbers of employees and found Whitson's salary ranked below that of town managers in Clayton, Garner and Carrboro, all of which have 150 to 158 employees. Town managers in these municipalities made between $126,000 and $150,000. Of the six municipalities Morrisville surveyed, the average administrator's salary was $134,426.

Holcombe said Whitson was also responsible for pursuing the conversion of private streets into public streets to ensure proper maintenance and performing a utilities audit.

"He continues to bring new ideas forward," she said.

Council members also decided to improve the severance clause in Whitson's contract. If the council chooses to terminate his contract for anything other than misconduct, he will get one month's pay for every year of service.

Prior to the amendment, Whitson was capped at 6 months severance.

Whitson anticipated a good review, but what he didn't anticipate was a raise.

"I was caught completely off guard," he said.

Other town employees could also receive a pay raise as part of this year's budget. Employees are eligible to get a 2.2 percent to 6.2 percent merit-based salary increase, which will cost the town about $317,000.